MA tax return questions

[gfdew]

Hi.

I'm NH resident that is working for MA-based company. I was filing non-resident MA tax return. Since pandemic started I was working from home in NH and in 2021 after MA has ended state of emergency I was able to apportion my taxes for that year. Since I was not planning to return to the office in 2022, I submitted updated W-4 with my finance specifying my actual address of work performed in NH which has changed my state residency. I'm not planning to commute to MA for work in near future. I guess when this condition changes, I can submit new W-4 form.

Based on this I have two questions:

1) My W-2 for 2022 reports only part of my wages to MA (before W-4 submit) and I was in the office 5 days that year so I assume I apportion my taxes as usual? Should I use my full salary or MA reported part for apportion?

2) Starting 2023 my wages will not be reported to MA but occasionally (5-6 days a year) I will visit office for meetings. How I apportion those days and pay tax?

I've read a thread that is similar: https://ttlc.intuit.com/community/state-taxes/discussion/massachusetts-income-tax-for-non-resident-w....

But still my case is a bit different. Will appreciate answers. Already asked mass connect in my profile, they just slow.

[ErnieS0]

Yes. You will file a nonresident Massachusetts income tax return and apportion your wages. You only pay tax on the days you are physically working in the Bay State.

For 2022 you would apportion your full wages.

Do the same for 2023.

To apportion your wages:

1. Go to the screen “Nonresident Apportionment”
2. Tap EDIT next to your W-2
3. On “Apportionment Method,” choose Working Days, then Continue
4. On “Nonresident Apportionment” fill in the days you worked inside and outside MA.
5. Enter any other “Non-Massachusetts Portion of Income”
6. Continue to “Non-Massachusetts Portion of Deductions.” This is your Social Security and Medicare withholding. Enter the Non-MA Portion. Use Wages earned outside of Massachusetts from earlier divided by Total Income for your percentage (which should be around 40% - 2/5 days)

[gfdew]

Thank you.

So I need to ignore the State Wages amount (box 16) in my W2 and always enter my box 1 amount for state taxable income?

Should I consider changing my W4 to MA state residency? As I don't plan to have more than 1 full week a year inside MA, I don't fill comfortable transferring almost whole state tax between my account and MA DOR. Practically my workplace is in NH. What setup is right?

[AmyC]

1. Yes, ignore state wages on w2. You can fill in the amount that is correct from your own math or use the program and the full amount to apportion.

For example: If you worked 5 days in MA out of 260 total working days, that is 1.9% of the income earned while in MA. If you earned $100,000 and 1.9% was in MA, you could enter $1,900 for state wages on the w2 - or the full amount and apportion in MA program.

2. You don't want to pay MA every paycheck when you are barely there. You could make estimated payments. See Massachusetts DOR Estimated Tax Payments - Mass.gov

3. Your residency is NH so that is where you want taxes to go.